38_European_Business_Magazine_Summer_2020

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Dealing with Consequences:

Can Industries Bounce Back after the Coronavirus Outbreak?

M

assive layoffs, bankruptcies, complete closures, billions in lost revenue… Since the beginning of the coronavirus outbreak, global sectors and industries have been facing overwhelming challenges. Travel and transporta on, automo ve, manufacturing, electronics, retail, oil, and gas — the spread of the virus have forced many industries to stop or slow down their physical opera ons, and while each of these industries is juggling with its own

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specific set of struggles, many of their challenges are shared ones. What is more, as the number of infec ons in different countries is beginning to rise again, businesses and industries are facing some more bad news and uncertain es about the future. Let’s take a closer look. When you think about it, few industries have fallen as far and as fast as tourism. Before the pandemic, the industry counted as much as billion trips per year. But the coronavirus

outbreak managed to erase more than a decade of growth, returning the industry to 2006 levels. The Interna onal Air Transport Associa on (IATA), which has 290 member airlines, predicts a global loss of $84,3 billion this year. The global industry group expects airline revenues to plunge as much as 50 percent, to $419 billion this year from $838 billion in 2019. Alexandre de Juniac, CEO of the group noted that “Financially, 2020 will go down as the


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38_European_Business_Magazine_Summer_2020 by European Business Magazine - Issuu